Car Insurance in Australia: Market Research Report

Premium growth: Increasing demand and investment income will benefit insurers

IBISWorld’s Car Insurance market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

Market Share of Companies

Allianz Australia

Insurance Australia Group

QBE Insurance Group

Suncorp Group

Industry Statistics & Market Size

Revenue

$17bn

Annual Growth 09-14

2.8%

Annual Growth 14-19

Profit

Employment

6,279

Businesses

48

Industry Analysis & Industry Trends

The past five years have been characterised by a run of poor investment performance and consecutive seasons of destruction. As the frequency of natural disasters has risen, so has the frequency of insurance claims. As natural disasters have caused damage across Australia, the value of payouts has risen quickly, putting pressure on insurers' profit margins. Although insurers have been able to pass on the rising costs to policy holders, the time lag between the new premium prices and payouts has caused profit margins to decline substantially. The rise in claimants has been compounded by poor investment income because of the low-yield environment. Weak economic conditions have driven up demand for bonds and other high-quality fixed income assets that insurers are heavily invested in... purchase to read more

Industry Report - Industry SWOT Analysis Chapter

The industry is the growth stage of its life cycle, as industry value added (a measure of the industry's contribution to GDP) is forecast to grow at a compound annual rate of 18.4% over the 10 years through 2018-19. This is significantly higher than expected compound annual growth of 2.6% in real GDP over the same period. This is due to profit rising off a low base in 2008-09 due to poor investment returns as a result of the global financial crisis. Healthier profit margins because of better investment conditions will play a large part in boosting the industry's contribution to the economy. As economic conditions strengthen, the yield curve is expected to normalise... purchase to read more